MGX joins Silver Lake in buyout of Intel’s Altera chip business

Abu Dhabi-owned MGX agreed to co-invest with private equity firm Silver Lake and a group of partners in acquiring 51% of Intel’s programmable chip business, Altera.

The deal, which was announced on Tuesday after being completed on Sept. 12, values Altera at about $8.75 billion. The investor group led by Silver Lake paid approximately $3.3 billion for its majority stake.

The size of MGX’s individual investment was not immediately disclosed. Under the agreement, Intel will retain a 49% ownership in Altera (not to be confused with the UAE climate investment fund, Altérra).

MGX, founded last year by Abu Dhabi’s Mubadala sovereign wealth fund and tech company G42, said the deal aligns with its strategy to invest in the world’s most promising AI developers.

“Altera provides a foundational platform for next-generation computing,” Omar Alismail, MGX Chief Investment Officer, Semiconductors and Infrastructure, said in a statement. “This is an opportunity to scale a company of such significance into a true global leader for the AI era.”

The deal is one of the first in the semiconductor sector for MGX, which has set a goal to build its assets under management to at least $100 billion.